New law threatens our charities

Some of Australia's great icons could be lost if the Federal Government proceeds with a plan to silence its critics in the charity sector.

The National Trust, which pushes for the protection of historic sites, says the threat to revoke the tax- deductible status of some charities could seriously undermine its work.

It would deny the trust the resources it needs to identify, lobby for and list significant sites.

"There is no doubt a lot of our heritage could be at risk," said executive director Elsa Atkin. "As a charity, we rely heavily on tax-deductible donations."

Last month, Treasurer Peter Costello released draft legislation that would withdraw the tax deductible status of charities and other organisations that advocate and lobby for amendments to government policy. The draft even says that "attempting to change the law or government policy" would disqualify the organisation.

Some of the nation's leading community-based agencies believe the bill is an attempt by the government to muzzle them.

The proposed legislation would especially hurt the National Trust, because almost a third of its annual budget of up to $7 million comes from tax-deductible donations. Ms Atkin said much of its work involved publicly lobbying Federal, State and local governments.

She also said staff members of government-run heritage bodies often privately urged her to lobby for the preservation of sites. "Almost every day people who work in government come to me to make an issue public because they can't do it. This is why we have been so successful."

Ms Atkin said several public assets had been saved because the trust campaigned publicly. These include the art deco Museum of Contemporary Art, which foreign architects wanted to demolish; the Queen Victoria Building, which previous state governments had earmarked for demolition; and the Walsh Bay wharves.

"We had to make a fuss - a big fuss and in public - to make sure these buildings were saved for the people of Sydney," Ms Atkin said.

She added that the trust's advocacy helped save the Myall Lakes, near Newcastle, from sand mining, and the State Theatre in Market Street.

"You have to be able to lobby without fear or favour for changes that benefit the community," Ms Atkin said. "If this law passes it would muzzle us, and a lot of other charities, and play havoc with our finances."

Mr Costello's proposed bill disregards the findings of his own 2001 inquiry, headed by businessman David Gonski, which said charities should be allowed to continue their advocacy and maintain their tax deductible status.

Along with the National Trust, the law would restrict the work of the St Vincent de Paul Society, the Red Cross and many child-care co-operatives and overseas relief agencies.